Payroll update relating to Itemised Payslips

Itemised payslips will soon need to contain information regarding the number of hours worked.

The update to the Employment Rights Act 1996 has been laid before Parliament and will come into force from 6 April 2019. It requires that payslips either include an aggregated number of hours or separate figures for different types of work (or rate of pay). However, this will only be necessary in situations where the employee’s pay varies due to the number of hours worked.

The explanatory note states: ‘This instrument amends section 8 of the Employment Rights Act 1996 (c. 18) (“the 1996 Act”), adding to the list of particulars which must be included in the itemised pay statement which an employee has a right to be given.’

‘The amendment requires an itemised pay statement to also contain information regarding the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.’